Life Insurance – Accelerated Benefit Rider Benefits

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Access life insurance benefits while you’re living

A terminal illness can create an immediate need for cash. With the Accelerated Benefit Rider* (ABR), you may qualify for access to a portion of your life insurance death benefit while you are living.

ABR allows advanced payment of the death benefit if you are:

  • diagnosed by a physician with a terminal illness, which will result in death within 24 months; or
  • confined continuously for 90 days in a nursing home and reasonably expected to remain there for the duration of your life

There is usually no premium charge for the ABR and usually no cost to add it to your policy.

How can you use this benefit?

The benefit proceeds you receive can be used in any way you wish, for example, to fulfill a lifetime dream, reduce existing debts or cover medical expenses during your illness.

One advanced lump-sum payment is available each calendar year until reaching the maximum lifetime benefit. The maximum lifetime benefit available is the lesser of 50 percent of the death benefit or $250,000.

Things to consider:

  • Unlike conventional life insurance proceeds, accelerated benefits payable under this rider may be taxable
  • Accelerated benefits under this rider may affect Medicaid or other government benefits or entitlements
  • In certain situations, access to the policy’s cash value, if any, may be limited. Read the policy and the rider carefully
  • We charge an administrative expense fee to process each claim
  • A lien is established against the policy death benefit when you access this policy benefit. The lien accrues interest compounded daily and you may repay all or any portion of the lien at any time

Consult with your tax adviser or attorney about your specific situation.

If you are interested in a free life insurance quote please contact us today 248-853-0930.  Click here for additonal Life Insurance information.

This information was provided by Cincinnati Life and pertains to their ABR form. This is not a policy. For a complete statement of the coverages and exclusions, please see the policy contract. All applicants are subject to underwriting approval. Products available in most states. Neither The Cincinnati Life Insurance Company nor its affiliates or representatives offer tax or legal advice.

Personal Umbrella Insurance

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Your personal umbrella policy:  Increased policy limits… and more

 

Accidents involving common, everyday activities may result in a worst-case scenario. Being held legally liable for injury to another person or damage to their property could exhaust your home or personal auto policy liability limits, and cause financial ruin to your family. A personal umbrella policy works hand in hand with your existing underlying insurance, adding a layer of liability limits to protect you in today’s litigious society.

A personal umbrella liability policy offers vital coverage benefits, and for a relatively inexpensive premium compared to the amount of coverage purchased. Talk to your local independent agent to find out how a personal umbrella allows you to obtain:

  • protection for claims for losses not covered by an underlying policy
  • worldwide coverage
  • rental car, special events and liquor liability coverage
  • coverage for libel, slander, defamation or invasion of privacy
  • coverage for loss of earnings while settling a claim

Review your insurance plan regularly, and seek your agent’s coverage recommendation.

An umbrella liability policy may be especially appropriate when you have certain exposures:

  • Is there a potential hazard in your backyard? Swimming pools, trampolines and other meant-to-be-fun gear can cause serious injuries.
  • Do you own a pet? When left unattended or without adequate safety controls, some pets become scared and aggressive. You could be held liable if your pet bites a neighbor or passer-by.
  • Are there any young drivers in the family? Inexperienced drivers are at higher risk of being involved in auto accidents.
  • Do you own a boat? Lawsuits can result from all sorts of water-related accidents, such as skiers being towed from your boat or from another boat. Improper and unsafe personal watercraft use accounts for most watercraft liability accidents.
  • Do you have adequate auto insurance liability limits? Most standard auto policies insure you, your resident family members and those who use your car with permission. The possibility of a serious loss – and the need for umbrella coverage – is there.

These are just a few situations where you could be held responsible for claims for loss that exceed the liability limits provided by your personal auto or homeowner policy. A personal umbrella liability policy protects your financial assets and can make the difference in your ability to meet your responsibility to reimburse others for their injury or damage.

For more information on Michigan Umbrella Insurance please contact us 248-853-0930.

FIRE SPRINKLER INCENTIVE ACT IS FILED in 114TH CONGRESS

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BREAKING NEWS:  FIRE SPRINKLER INCENTIVE ACT IS FILED in 114TH CONGRESS

On September 22nd, Sen. Susan Collins (R-Maine) and Sen. Tom Carper (D-Delaware) filed S. 2068 and Rep. Tom Reed (R- New York) and Rep. Jim Langevin (D-Rhode Island) introduced H.R. 3591, the companion house legislation to encourage building owners to invest in life-saving fire safety upgrades.

The Fire Sprinkler Incentive Act (FSIA) strengthens tax incentives for building owners to install fire sprinkler retrofits that can save many lives and countless dollars in property loss from fires every year. Currently, commercial building owners must depreciate fire sprinkler retrofits over a period of 39 years and residential building owners over 27 ½ years. The FSIA reclassifies fire sprinkler retrofits as 15-year depreciable property, allowing businesses to receive tax benefits more quickly. 

The original legislation was introduced in 2004 following the tragic nightclub fire in West Warwick, RI that claimed 100 lives. Since then, the legislation has been reintroduced in subsequent Congresses with various changes made to address concerns raised by members of Congress regarding cost estimates. The current legislation has addressed those concerns.

“We applaud Senators Collins and Carper along with Representatives Langevin and Reed for their perseverance – life safety for citizens and firefighters is worth it,” explains Chief Shane Ray, President of the National Fire Sprinkler Association (NFSA). “This legislation will help fire chiefs, as well as state and local government officials make improvements in fire protection with a public private partnership that will save lives.” 

Under the current legislation, automatic sprinklers could be treated as Section 179 property under the tax code. Section 179 allows small and medium-sized businesses to write off the full cost of equipment purchases, up to $125,000, in a single year. While automatic fire sprinklers are not currently classified as a Section 179 property, passage of the legislation would allow property owners to retrofit a large majority of high fire risk properties, such as certain off campus housing, night clubs, nursing homes and assisted living facilities. 

The legislation would also create a financial incentive for high-rise building owners to install sprinkler systems by reducing the depreciation schedule to 15 years. 

“We hope this will be the legislative session that sees passage of this important legislation,” adds Chief Ron Siarnicki, Executive Director of the National Fallen Firefighters Foundation (NFFF). “Firefighter and citizen lives will be saved as a result of this proactive incentive-based strategy that supports the NFFF Firefighter Life Safety Initiatives, specifically Initiative 15.”

“As a survivor of the Station Nightclub Fire, I understand the fire problem in these building types better than most,” explains Rob Feeney, a fire safety advocate for Common Voices and the Phoenix Society for Burn Survivors. “I lost friends and loved ones in that fire and it amazes me that it takes so long to pass a law that can prevent this from happening again. My hope is that this Congress will pass the bill and save lives in the future.”

For more information about fire sprinklers, how they work and access to additional resources and information, visit www.nfsa.org for the latest material, statistics and a dedicated team of fire safety advocates ready to serve all stakeholders in order to fulfill the vision of a safer world.

For fire sprinkler contractors looking for general liability insurance please click here for more information.